Australia and the European Union (EU) have now concluded negotiations for an Australia-EU Free Trade Agreement (A-EU FTA), a comprehensive, progressive and commercially meaningful free trade agreement.
This landmark deal will further strengthen Australia’s economic and strategic partnership with the EU, unlocking a massive, high-income market of around 450 million consumers with a GDP of about $30 trillion.
Once fully implemented, 98% of the current value of Australia’s goods exports will enter the EU duty-free, delivering new market opportunities for many key Australian industries.
Once fully implemented, 94.8% of the value of Australia’s agricultural exports will enter the EU duty-free. Tariffs will be eliminated on:
For key agricultural products where tariffs are not eliminated, the A-EU FTA will create annual tariff rate quotas, including on:
On full implementation, all tariffs on Australia’s advanced manufacturing and other industrial goods (except steel) will be eliminated, including:
All tariffs will also be eliminated on Australian energy and resource products, including critical minerals, lithium hydroxide, and hydrogen and its carriers.
The FTA’s ‘Innovation Mobility Pathway’ will help Australian researchers to travel, stay and move within the EU, and offers better access for Australian institutions to world-leading European researchers, engineers and technicians.
The A-EU FTA will make it easier for Australian service suppliers and professionals to travel to the EU, and Australian professionals will benefit from a streamlined recognition of their professional qualifications in the EU.
Australian businesses will also have better access to bid for lucrative EU government contract opportunities.
The A-EU FTA supports two-way productive foreign investment.
The EU will provide Australian investors non-discriminatory treatment in sectors of commercial interest, such as mining, manufacturing, energy, tourism and education.
The FTA will also provide greater predictability for EU investors seeking to invest in Australia including in sectors such as mining, manufacturing, critical minerals and renewable energy.
Australia will raise its foreign investment screening thresholds for private EU investors in line with thresholds for other FTA partners, helping cement Australia as an investment destination of choice.
The agreement will facilitate greater cooperation with the EU on critical minerals, and recognises the interests of Australian First Nations peoples, including for art and intellectual property. And it does more to protect labour rights and environmental standards than any previous Australian trade agreement.
Australians will be able to benefit from the agreement once it enters into force. This could take up to two years.
More information on the next steps to bring the agreement into force can be found here: A-EU FTA Next Steps.
For information on export opportunities in Europe visit the Go Global Toolkit.
For detailed information on the A-EU FTA agreement, visit the A-EU FTA page on the Department of Foreign Affairs and Trade (DFAT) website.
Austrade’s Go Global Toolkit helps you learn the export basics, find the right markets and understand market requirements.